Christmas can add personal debt

New Year's resolution requires borrowers to face reality of debt burden.

Faced with a mountain of debt, in many cases made worse by Christmas credit sprees, large numbers of borrowers will be counting the cost in the New Year. A big proportion of these will either put their heads in the sand and hope that the problem will simply go away, or will go for instant solutions such as increased borrowing (with all the longer-term extra costs that that brings).

One practical New Year’s resolution could be to take a highly successful approach that IDF Services is applying to the growing numbers of troubled borrowers who approach the company for counselling and practical help in addressing their credit problems. It involves a legally-enshrined ‘informal arrangement’ for debt management between the borrower and lenders that deals with debts in an affordable, orderly way without incurring further costs in terms of interest or further loans. Throughout the period of settling debts, IDF handles all paperwork and provides professional support for clients to help restore confidence and stability in their lives.

Approach the problem of debt with new strategy

Ian Foskett of IDF Services, a company independent of financial institutions, comments: “Borrowers seeking our advice are given full counselling by our team of advisors, and an approach to their problems is drawn up which usually proves acceptable to both parties: the lender and the borrower. This reduces pressure on borrowers and enables them to get ahead with their lives, aware that the informal arrangement is working progressively towards settling their debts without imposing too great a financial strain upon them. It avoids storing up problems for the future which such ‘solutions’ as additional loan facilities etc can impose on them.’

The debt management industry has largely overlooked the voluntary arrangement approach, despite its being wholly acceptable in law and despite its value to individuals, business, and society in avoiding the dangers and difficulties that bankruptcy creates.